alexa

Search in Indianmoney's WealthPedia

Home Articles Health Insurance Grace Period

Health Insurance Grace Period

IndianMoney.com Research Team | Posted On Friday, July 26,2019, 05:55 PM

5.0 / 5 based on 1 User Reviews

Health Insurance Grace Period

 

 

Health insurance is a type of insurance coverage which pays for the medical and surgical expenses, incurred on treatment of the policyholder or his family. The health insurance covers fully or partly, the cost incurred on medical care and treatment of the insured, in return for premiums paid every year, on or before the due date.

You can avail a health insurance policy, directly from the insurer or you can purchase the policy, online. However, you must pay your insurance premium in full on or before the due date. However, if you miss the due date, then the insurance company offers a ‘short period’ for the payment of outstanding premiums known as the ‘grace period’.

Want to know more on Health Insurance? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice/education to ensure that you are not misguided while buying any kind of financial products.

Health Insurance Grace Period

What is the Grace Period on Health insurance?

The Grace period on health insurance can be defined as the additional time allotted, to pay the premium, even after the due date. As per rules, insurance companies must offer a grace period of 15 days for premium payment, for the renewal of health insurance plan.

See Also: Common Health Insurance Mistakes

Some insurers also extend the grace period on health insurance, until 30 days after the due date. Therefore, the grace period helps gain extra time to make the premium payment. This feature is especially useful for people who forget the premium due date.

However, the premium must be paid within the grace period. Once the grace period is over, the insurance company can reject your plea to renew the health insurance policy, even if you are willing to renew the policy.

Drawbacks of not Making a Premium Payment on Time:

Listed below are some of the major drawbacks of not paying your insurance premiums on time:

Renewal Can be Refused:

The health insurance company can reject your renewal, for frequent delay. In this case, you would be forced to avail a new health insurance plan. This will result in discontinuation of all the health insurance benefits you currently enjoy. You would have to start the waiting period and pre-existing diseases waiting period, all over again.

No Benefits Coverage in the Grace Period:

You don’t get health insurance benefits during the grace period as you have not made premium payments on time. Therefore, if you make a claim during the grace period, it will not be honoured.

See Also: What Is Health Insurance?

The Pre-Existing Cover Period is Reset:

The riders would be readjusted and you will be considered a new customer. Therefore, any medical condition like a critical illness or an ailment will henceforth be considered as a pre-existing disease and you will have to wait out the waiting period to enjoy the benefits of your health insurance plan.

Waiting Periods:

As already discussed, the waiting period on your health insurance as well as riders would be re-adjusted. This will result in the loss of all the benefits which you were previously enjoying.

What Will Happen if You Reach the End of Your Grace Period?

The policyholder must remember the due dates and pay all premiums within the due date. In case he forgets to pay the premium, he can still clear the outstanding dues within the grace period. The grace period starts from the time you fail to pay your premium within the due date. This concept can be understood by the following illustration.

See Also: Health Insurance Benefits

  • Suppose the due date for your health insurance policy is on the 2nd of June.
  • If you fail to pay your premium within the due date, the grace period of 15 days commences.
  • Therefore, you must clear your premium payments within 17th of June.
  • If you have still not paid the premium after the grace period, then your insurer will discontinue your policy.
  • You can recover your health insurance policy by renewing it through your insurer.
  • Your insurer may also choose to reject your renewal application and in such an instance, you will have to start all over again. You will be treated as a new customer and your existing medical conditions will be treated as pre-existing diseases. The waiting periods for your riders and your policy will be reemployed.

You May Also Watch

Iframe Content

Keep your Financial Cognizance up to date with IndianMoney App. Download NOW for simple tips & solutions for your financial wellbeing.

Have a complaint against any company? IndianMoney.com's complaint portal Iamcheated.com can help you resolve the issue. Just visit IamCheated.com and lodge your complaint. If you want to post a review on any company you can post it on Indianmoney.com review and complaint portal IamCheated.com.

Be Wise, Get Rich.

What is your Credit Score? Get FREE Credit Score in 1 Minute!

Get Start Now!
CIBIL Meter
Get It now!
Attention!

This is to inform that Suvision Holdings Pvt Ltd ("IndianMoney.com") do not charge any fees/security deposit/advances towards outsourcing any of its activities. All stake holders are cautioned against any such fraud.